Here’s a thought. If the public sector got back to working as efficiently as it did in 2019 there would be no black hole in the budget. The Chancellor would not be rummaging through the left’s jumble sale of taxes on the better off, code for anyone who works hard or dares to run a business or save.
According to EY if public sector productivity had kept up with private sector productivity since 2019 we would be £80 bn better off. My estimate say if public sector productivity had not fallen the state would be around £30 bn a year better off. Total public sector productivity is 4% down.
It should shock more people that public sector productivity is still well below 2019 levels. It should be screaming headlines. Labour backbenchers should be demanding action. Billions have been pushed into the NHS by the last and the present government. The public sector has spent a fortune on new computers and smarter software. So why the fall off in labour productivity? Why a negative return on all that investment?
It is a sobering thought that all this century the public sector has missed out on the big advances in productivity elsewhere, whilst stinging the taxpayer for the digital revolution costs. Even worse for 25 years there has been no overall public sector productivity gain. It fell under Labour up to 2010, rose under Coalition/Conservative to 2019, then tumbled under covid.
We have all been made to find out about public services through impersonal websites, make payments electronically, try to get our queries answered by computers standing in for staff, yet staff numbers have gone up. What are they all doing? Why do service users have to kept apart from these additional people who are meant to serve us? Why so many more managers and fewer useful people to help us keep up with increasing regulatory and tax demands the aggressive computers impose on us?